SIM Only vs Phone Plans: Which Is Right for You?

Choosing between a SIM-only plan and a plan that includes a handset is one of the most consequential mobile decisions you'll make. Get it right and you could save $500 or more over two years.

SIM-only plans explained

A SIM-only plan gives you a physical SIM card (or eSIM) with a mobile data allowance, unlimited standard calls and texts. You provide your own phone. These plans are usually month-to-month, giving you the freedom to switch carriers without penalty whenever you like.

Typical SIM-only plan inclusions (2025)

Price range	Data	Calls & texts	Extras
$10–$20/month	5–15GB	Unlimited Aus	Basic roaming
$20–$40/month	30–100GB	Unlimited Aus	International calls
$40–$65/month	150GB–Unlimited	Unlimited Aus + int'l	Roaming, hotspot

Phone plans with handsets

These plans bundle a mobile phone repayment with a monthly plan. The carrier finances the handset cost over 24–36 months, which is added to your monthly bill on top of the plan cost.

Example: An iPhone 16 (RRP ~$1,499) financed over 24 months adds roughly $62/month to your plan cost. A matching SIM-only plan might cost $35/month. Total cost over 24 months:

Phone plan: ($35 plan + $62 handset) × 24 = $2,328
Buy outright + SIM-only: $1,499 + ($35 × 24) = $2,339

In this example, the difference is small. But many carrier plans mark up the handset cost or pair expensive handsets with more costly plan tiers. Always compare the total 24-month cost carefully.

Tip: JB Hi-Fi, Harvey Norman and Apple often offer lower handset prices than carriers, especially with trade-in deals. Buying there and pairing with a SIM-only plan is frequently the cheapest option.

The real cost comparison

The best way to compare is total cost of ownership over 24 months (the typical handset finance period):

Find the phone's best outright price (check JB Hi-Fi, Officeworks, Apple, manufacturer's website)
Add the SIM-only plan cost × 24
Compare with the carrier plan's total monthly cost × 24

Account for any plan perks (international inclusions, streaming subscriptions) the carrier plan offers that the SIM-only plan doesn't.

When to choose a SIM-only plan

You have a phone that's less than 3 years old and works well
You want maximum flexibility to switch carriers
You can pay for a phone outright or use buy-now-pay-later
You're price-conscious and want the cheapest per-GB cost

When a phone plan with handset makes sense

You need a new flagship phone and can't pay outright
The carrier's handset price is genuinely competitive (check first)
The bundled plan is priced competitively compared to SIM-only
You want one bill combining phone repayment and plan

Frequently asked questions

What is a SIM-only plan?

A SIM-only (or BYO) plan provides just the SIM card with calls, texts and data. You use your own existing phone. These plans are typically month-to-month or short-term and significantly cheaper than plans that include a phone repayment.

Can I keep my phone number when switching to a SIM-only plan?

Yes. You can port (transfer) your existing mobile number to any Australian carrier. The porting process typically takes 2 business hours on a weekday. You keep your number regardless of whether you're going SIM-only or switching to a phone plan.

Is it cheaper to buy a phone outright?

Generally, yes — if you can afford the upfront cost. Handset financing through a carrier plan typically includes a markup on the phone's retail price, and you're locked into that carrier for the repayment period (usually 24–36 months). Buying outright and using a SIM-only plan usually saves $200–$500 over two years.

What happens if my phone is damaged or lost during a phone plan?

If you finance a phone through a carrier, you still owe the full remaining handset repayments even if it's damaged, lost or stolen. Handset insurance is available but adds $10–$20/month to your cost. This is a key advantage of buying outright — you have more flexibility.

Can I use a phone from overseas on an Australian network?

Yes, as long as the phone is unlocked and supports the frequency bands used by Australian carriers. Most modern flagship phones are compatible. Carrier-locked phones (often sold through carriers) can usually be unlocked after a period or for a fee.

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